China adds 20 tonnes to gold reserves in July, Hong Kong to boost storage

China increased its official gold reserves by 19.9 tonnes in July, reaching a total of approximately 2,366 tonnes, according to data released by the State Administration of Foreign Exchange (SAFE). The latest addition marked the central bank’s largest monthly purchase since October 2023, continuing a consistent buying streak that now extends to 21 consecutive months.

Tokenized Stock

PAY

USDT

↓

RECEIVE

AAPL

Swap

Central bank accelerates bullion accumulation

SAFE reported that China’s gold reserves rose from 75.44 million to 76.08 million fine troy ounces between June and July. The July increase followed earlier monthly purchases, including approximately 15 tonnes in June and 10 tonnes in May. For 2026, China’s gold acquisitions stand at an estimated 60 tonnes so far.

World Gold Council data indicated that China added about 40 tonnes during the first half of 2026. The July purchase pushed the total further, reinforcing the country’s active accumulation strategy.

China’s central bank continued its gold buying in July with nearly 20 tonnes added, the largest monthly increase since October 2023 and the 21st consecutive month of purchases.

With this persistent accumulation, China has solidified its position among the world’s largest official gold holders. The People’s Bank of China (PBOC), as the country’s central bank, plays a key role in managing these reserves as part of broader efforts to diversify away from traditional reserve assets.

The ongoing purchases also reflect growing central-bank demand globally. The World Gold Council reported that official institutions worldwide accumulated a net 289 tonnes in the second quarter of the year, pushing first-half demand to 345 tonnes.

Safe values, price rise, and future buying expectations

SAFE valued China’s gold reserves at $306.35 billion at the end of July, up from $303.72 billion one month earlier. This increase also tracked a rebound in gold prices, which rose by 0.84% during July after four months of declines, with spot prices surpassing $4,310 per ounce.

In SAFE’s annual survey, 89% of participating reserve managers expected global central-bank gold holdings to rise over the next year. Meanwhile, 45% anticipated their own institutions would acquire more gold in the coming months.

Hong Kong expands bullion market infrastructure

China’s rise in gold reserves coincides with significant developments in Hong Kong’s bullion market. The Hong Kong government announced plans to increase gold vault storage capacity to over 2,000 tonnes by 2030, a tenfold jump from current levels. Authorities also reintroduced U.S. dollar-denominated gold futures, launched a central gold clearing system, and introduced new arrangements for physical settlement.

These steps aim to strengthen Hong Kong’s position as a global precious metals hub, closely connecting mainland and international markets. The new “Delivery Connect” mechanism with the Shanghai Gold Exchange now allows for direct, physical gold settlement between China and Hong Kong.

Mini dictionary: SAFE – The State Administration of Foreign Exchange is a Chinese government agency responsible for managing the country’s foreign exchange reserves, including gold and other assets.

At the same time, reports indicated that the PBOC increased bullion inventories held in Hong Kong and shifted some holdings from London, though official details have not been disclosed.

London sustains global market dominance

Despite the ongoing buildout in Asia, London retains the world’s largest gold storage footprint. London vaults held 9,464 tonnes of gold as of June, more than four times the capacity Hong Kong aims to reach by 2030.

In May, London also cleared 16.1 million ounces of gold daily, highlighting its scale compared to the expanding Asian market. These developments underscore the dual track of China’s reserve accumulation strategy and robust investment in regional bullion infrastructure.